Drivers have been warned to look out for a new 'crash for cash' fraud which has seen scammers travel to Scotland to cause smashes and cash in on insurance money.
Insurance company LV believe that the increase is being driven by a law change in England and Wales that has reduced the amount of compensation drivers are entitled to following a whiplash claim. It means crooks are now travelling to Scotland in a bid to cash in.
'Crash for cash' works by targeting innocent motorists to become the ‘at fault driver’ in an accident by slamming on the breaks to cause an accident. And in the past year alone, there has been a 60% rise in the number of personal injury claims reported to LV in Scotland.
Alan Gibbs was one of those who fell victim to the scam as he travelled to Largs in September last year. He said: “I’d heard of crash for cash and was aware of it happening to other people, but I never thought it would happen to me.
"I was travelling up to Largs in Scotland on the A70 near Cumnock when the car in front set off to join the roundabout. I followed but then suddenly the car slammed on to a complete stop, even though the road to the right was clear and I went into the back of him.
"I didn’t even see any brake lights come on when he braked. To think criminals do this on purpose for money is shocking, and is putting innocent drivers at huge risk.
"I was lucky and I wasn’t too badly injured or shaken up, but others might not be so fortunate. Creating more awareness for the public is so important.”
LV has told the Record that they are currently investigating ten organised fraud cases with an estimated value of £2 million. They have identified hot spots in Dumfries and Ayrshire including the A70, A74, A75, A76, M74 where gangs are operating but have said there have also been incidents identified in the Greater Glasgow area.
Matt Crabtree, Head of Fraud Strategy at LV= General Insurance added: “Insurance fraud is evolving all the time, with fraudsters continuing to find ways to target innocent motorists for their own financial gain. Deliberately slamming on brakes to induce a collision is an extremely dangerous crime. It can have severe consequences to the victims including life changing injuries and fatalities, which is why we’re committed to helping raise awareness of the issue and tackle this at the source with local police forces.
“We want to help educate drivers and send a warning to help put a stop to this activity, and I’d encourage drivers to look out for emerging trends and read top tips to become much more confident at spotting crash for cash fraud.”
Jon Radford, Head of Intelligence and Investigations at the Insurance Fraud Bureau (IFB), said: "We are actively investigating reports of suspected Crash for Cash activity in Scotland. We encourage all road users to watch out for the signs of these dangerous scams and to report any evidence to our confidential Cheatline."
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